The government has given permission to three foreign oil companies to sell fuel at retail prices below the CPC rates.
Related agreements with China’s Sinopec, Australia’s United Petroleum and R.M. Parks Inc. of the US are to be finalized by the end of this month.
The Ministry of Energy expects their entry to the local market will create competition and prevent shortages.
The import burden too, is expected to ease, with each planning to import fuel worth USD 120 million per month.
This is compared with the government spending of USD 450 million on average.
Each foreign company will handle 150 filling stations, and will be allowed to open 50 each later on.